 | State budget revenue in 2021 reaches the finish line a month early |
| Striving to achieve highest target of revenue in 2021 |
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| Leaders of localities report at the conference. Photo: Thuy Linh |
Positive results in revenue collection
At the conference to review the financial-budgetary tasks in 2021 held by the Ministry of Finance on January 6, Vice Chairwoman of the People’s Committee of HCM City Phan Thi Thang said 2021 was the second year that the city’s socio-economy was affected by the Covid-19 pandemic. The Government has implemented solutions to reduce taxes and extend tax payment deadlines to help enterprises overcome difficulties and restore production.
Although the revenue in the city since May 2021 tended to decrease compared with previous months, it still maintained a growth rate compared with the earlier period. However, the revenue plunged in August and September due to the public health crisis. In September, it only reached 55.82% compared with the average revenue per month.
However, the Vice Chairwoman said although the state revenue collection suffered from difficulties and challenges, the city’s revenue in 2021 saw a year-on-year increase of 2.73% to VND381,532 billion, meeting 104.56% of the estimate. Of which, the domestic revenue reached 102.7% of the estimate and import-export revenue at 108.95% of the estimate.
In addition, amid the pandemic in the city, the increase in urgent expenditures for disease prevention and control policies, the city faced the risk of losing its balanced budget. Therefore, the central government’s support of 71,105 tons of rice for people and VND2 trillion helped the city to overcome difficulties. As of December 2021, the city spent VND17,810 billion on disease prevention and support for people affected by the Covid-19 pandemic.
Ha Noi has also exceeded the revenue target in 2021. According to Vice Chairman of the Hanoi People’s Committee, Ha Minh Hai, the city’s revenue collection faced difficulties due to the development of the Covid-19 pandemic. Since early in the year, the city provided effective solutions to manage revenue, strengthen inspection and examination, prevention of revenue loss, transfer pricing and tax fraud to increase the revenue; removed obstacles related to financial obligations on land for projects, thereby handling and resolving problems for seven projects worth VND936 billion; collected outstanding tax debts and reformed and simplified tax procedures.
In addition, the city implemented the Government’s Decree 52/2021/ND-CP extending the payment deadline of VAT, Corporate Income Tax, Personal Income Tax and Land rent in 2021 and other support policies with a total amount of VND27,537 billion.
“Therefore, the total public revenue of the city in 2021 was VND265,755 billion, meeting 112.8% of the target set by the central government, contributing to fulfilling the goal of socio-economic development and ensuring resources to perform the political tasks,” the Vice Chairman said.
By December 31, the city’s public expenditure was VND73,858 billion, reaching 76.0% of the target set by the central government. The city allocated funds for pandemic prevention and control and supporting people hit by the public health crisis.
Vice Chairman of Hai Phong City People’s Committee Le Anh Quan said the total revenue of the city in 2021 rose 13% year-on-year to VND95.5 trillion and grew by 23.7% of the target set by the central government. The revenue from imports and exports rose 21.1% year-on-year and 16.7% compared with the estimate to VND57.8 trillion; the domestic revenue increased 10.9% year-on-year and 38% compared with the central estimate to VND36.3 trillion.
Hai Phong City allocated VND29.1 trillion to the local budget, up 31.7% compared with the same period of the previous year and 35% of the estimate. The total investment and development expenditure reached VND13.2 trillion, up 72.3% over the same period 2020 and 78.9% of the estimate; the recurrent expenditure increased 5.6% compared with the target to VND12.6 trillion.
Allocating resources for prevention and control of Covid-19
According to the leader of HCM City, the Prime Minister has assigned VND386,568 billion of the revenue target in 2022 to the city, accounting for 24.82% of the total estimated revenue of the country.
To achieve this target, the city must take measures to quickly recover the economy and maintain a balanced budget; improve the business investment environment, accelerate administrative reform, remove difficulties and obstacles in production and business. The city will also focus on promoting disbursement of public investment capital to help stimulate demand and economic growth, thereby contributing to raising sustainable revenues, Vice Chairwoman of the People’s Committee of HCM City Phan Thi Thang said.
The city will control the public expenditure in 2022 in a tight, thrifty and efficient manner, and arrange resources for Covid-19 prevention and control, economic recovery and provision for force majeure, natural disasters and disease.
Vice Chairman of the Hanoi People’s Committee, Ha Minh Hai also said Hanoi will make plans for the economic recovery and development, control the Covid-19 pandemic; remove difficulties for businesses and people; boost the socio-economic recovery and development in each sector, area, and focus on restoring production chains, labor supply and promoting economic growth, and ensuring social security and people’s lives.
Hanoi will manage the budget effectively, ensure social security and maintain the budget balance, striving to complete the revenue target. In the first quarter of 2022, the city will complete at least 27% of the central estimate, and implement financial policies.
Hai Phong City’s leader also said with huge investment demand, the city’s funds for the annual development investment have not yet met demand. The capital mobilization from loans is one of the effective solutions to satisfy the increasing investment and development needs.
“Hai Phong city plans to issue local government bonds as one of the channels to mobilize investment capital for projects under the local budget. Therefore, the city proposed the Ministry of Finance to work with the State Bank of Vietnam to accept the local government bonds in the list of valuable papers to be used in transactions of the State Bank,” said Mr. Le Anh Quan.